Gold Prices Forecasted to Reach $3,000 per Ounce by Citi Research

Citi Research has raised its three-month forecast for gold prices to $2,800 per ounce, citing potential U.S. labor market deterioration, Federal Reserve interest rate cuts, and increased physical and ETF buying. The bank also upgraded its 6 to 12-month forecast to $3,000 per ounce. Additionally, silver prices are expected to rise to $40 per ounce from the previous forecast of $38 per ounce.

Despite weakening China retail physical demand and rising U.S. interest rates, gold and silver have performed well following the Fed’s rate cut and positive payrolls data. Gold is also expected to benefit from any near-term spikes in oil prices due to Middle East tensions.

With gold hitting a record high and silver reaching a near 12-year peak, uncertainties surrounding the U.S. presidential election and Middle East conflicts are driving the rally, along with expectations of further interest rate cuts.

Citi remains neutral-bullish on platinum with a three-month target of $1,025 per ounce and a 6 to 12-month target of $1,100 per ounce. However, the bank leans bearish on palladium, setting a three-month target of $1,000 per ounce and a 6 to 12-month target of $900 per ounce.

Regarding oil prices, Citi forecasts an average of $60 per barrel in 2025 but warns of the potential for short-term geopolitical escalation in the Middle East.

Analysis:

Citi Research’s optimistic outlook on gold and silver prices suggests a favorable trend for investors looking to capitalize on potential market shifts. The forecasted price targets provide a roadmap for those interested in precious metals, with gold expected to reach $3,000 per ounce and silver at $40 per ounce. The bank’s assessment of platinum and palladium also offers valuable insights for investors seeking to diversify their portfolios. Additionally, the warning about possible oil price fluctuations due to geopolitical factors highlights the importance of staying informed and adaptable in the ever-changing financial landscape.

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